Suppose that cash flows of a project are given as follows: Year 0 : Costs: $150,000. Year
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Question:
Suppose that cash flows of a project are given as follows:
Year 0 : Costs: $150,000.
Year 1 : Costs: $20,000. Savings: $70,000.
Year 2 : Costs: $20,000. Savings: $70,000.
Year 3 : Costs: $20,000. Savings: $80,000.
Year 4 : Costs: $20,000. Savings: $80,000.
It is known that MARR is 10% and all cash flows occur at the end of the year, what is the projects Payback Period?
| 1 Year | ||
| 2 Years | ||
| 3 Years | ||
| 4 Years | ||
| This project does not pay back. |
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